Drop In Car Costs Hard Evidence Of Good Policies WorkingRevenue
Finance Minister Bill English said today that the substantial drop in the cost of owning and operating a car reported by the AA was the sort of hard evidence that proved the benefits of good economic policy.
"The AA reports that the cost of owning and operating a car fell on average by 12.25% in the year to February. This is the biggest one-year drop in the last 10 years.
"Since February some motoring costs have gone up, but the fact remains that the average family is now paying around $1000 less a year to run their car than a year ago.
"The main reasons were the drop in new car prices, insurance premiums, interest rates, and the price of petrol.
"All these benefits are the direct result of Government policies in recent years. New car prices have come down because we've taken away tariffs that kept the prices up. Competition has seen dealers work harder to earn customers, and lower car prices have had a flow-on effect on insurance premiums, which have also gone down. Lower prices in recent years have contributed to falling interest rates over the last 12 months. Petrol prices have come down because of the competition brought by Challenge Petroleum.
"All these Government policies have been criticised by Opposition parties. But the proof of the policies are in the tangible benefits delivered to families who have now got an extra $1000 a year to spend.
"This Government is determined to continue delivering real benefits like this through sound economic policies," said Mr English.